Debit or Credit ?

Sylvus Tarn sylvus@rejiquar.com
Tue, 25 Sep 2001 09:09:15 -0400


Dear Mr. Spahni,

Ahh, finally a question I can answer.  (I think.)  The answer is both.
If Deutsch banks work like American (US) ones do, you have to keep in
mind when they send you a statement or print you a deposit ticket,
they're doing so from *their* point of view.  In accounting, assets
(like checking accounts) increase on the debit side, that is, when
someone gives you money; and, when you give money, that is a credit.

The bank's statement (or deposit ticket) to you is printed from
their point of view.  They are giving you money, which to them is a
credit, but to you is a debit.  The same is true with a store.  If you
return something, technically they are debiting the account from your
point of view, but crediting it from theirs.  So most people, myself
included, request a ``credit'' when sending something back.  Because
most people only deal with bank printouts or store statements, they
use the terms in an exactly reversed way.

I like having the precision of exact accounting terms, and they're not
all that hard to learn---I managed with a one semester course at a
community college, and if I can, anybody can---but Gnucash, as you
say, is a wonderful program, and it has options for those labels,
including some that match ``everyday'' usage more closely.  I think
another list-reader suggested the ones best for you.

Hope this helps,

sincerely,

sylvus tarn